The Jhushan Taxation Office, National Taxation Bureau of the Central Area, Ministry of Finance reminds small-scale business entitie that if their operating expenses include salaries to employees or rent for business use, they must withhold tax according to the Income Tax Act and file withholding and non- withholding tax statement(s).
The office explaining, in accordance with Paragraph 3 of Article 89, and Article 92 of the Income Tax Act, tax withholders must remit the withheld taxes to the national treasury by the 10th of each month for the preceding month. They are also required to file a withholding and non-withholding tax statement for all types of income for the previous year with the competent tax authority by the end of January each year. If there are three or more consecutive national holidays in January, the filing deadline is extended to February 5.
The office noted that small-scale business entities exempt from issuing invoices often mistakenly realize that their taxes are solely assessed and levied by the tax office, without obligation for payment of taxes withheld and the filing of a withholding tax statement. As a result, they fail to comply with payment of taxes withheld and filing of withholding and non-withholding tax statements , which leads to penalties.
The office provided an example: In November 2024, Business A paid NT$30,000 in rent to Individual A. The business should have withheld NT$3,000 at the time of payment and remitted it to the national treasury by December 10, 2024. Additionally, it should have filed a withholding and non-withholding tax statement by February 5, 2025.
The office emphasized that the filing deadline for the Withholding and Non-withholding Tax Statement for the 2024 fiscal year has been extended to February 5, 2025, due to the Lunar New Year holiday in January 2025, which includes three or more consecutive national holidays.
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